Admin Table of Contents
What are the main factors that influence plant facility location?
1. Selection of Region:
- Availability of Raw Materials:
- Proximity to Markets:
- Transport Facilities:
- Availability of Power, Fuel or Gas:
- Water Supply:
- Disposal Facility for Waste Products:
- Climatic and Atmospheric Conditions:
- Availability of Labour:
What is a plant location?
Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken.
What are factors of location?
Include a number of opportunity factors related to a location, mainly labor (average wages, availability, level of qualification), materials (mainly for raw materials dependent activities), energy, markets (local, regional and global), and accessibility to suppliers and customers (important for intermediate activities) …
What are the factors that affect the choice of location?
Several factors that influence location positioning include the location of raw materials, proximity to the market, climate, and culture.
Why plant location is important?
The objective of plant location decision-making is to minimise the sum of all costs affected by location. Plant location is important because of the following: (ii) Location influences capital investment and operating costs. Location decisions are strategic, long-term and non-repetitive in nature.
What are the 7 location factors?
The seven factors affecting a location decision in operations management are facilities, competition, logistics, labor, community and site, political risk and incentives, according to Reference for Business.
What are the factors that affect the location of a plant?
Top 10 Factors Affecting Plant Location – Explained! The leading factors affecting plant location are as follows: 1. Selection of Region 2. Township Selection 3. Question of Urban and Rural Area 4. Location of a Factory in a Big City 5. Location of an Industry in Small Town 6. The Sub-urban Location for a Factory 7.
What should be the location of a plant?
In general, “a plant should be located at a place where the inhabitants are interested in its success, the product can be sold profitably and the production cost is minimum.” Factors influencing Plant Location
What are the factors that affect the location of a factory?
The leading factors affecting plant location are as follows: 1. Selection of Region 2. Township Selection 3. Question of Urban and Rural Area 4. Location of a Factory in a Big City 5. Location of an Industry in Small Town 6. The Sub-urban Location for a Factory 7. Site Selection 8. Current Trends in Pant Location 9.
Why are plant location decisions important for an organization?
Plant location decisions are very important because once the plant is located at a particular site then the organization has to face the pros and cons of that initial decision. While taking plant location decision organizations need to consider various factors such as availability of men, materials, money, machinery and equipment.